As a whole, the housing market will not recover fully until a few things happen; the most important being a reduction in the inventory of homes available through the general realty market.

This correction of supply and demand continues to present incredible housing deals, allowing our clients to CASH IN and get great homes at great prices.  We have an investor out in the area today looking at houses on our inventory and so should you!

If you want a fantastic deal on a beautiful home in Pennsylvania, check out the current inventory page or contact us directly for some of the newest homes that haven’t made it onto the site yet!

These homes only need some upgrading and cosmetic work and are perfect for a quick, Streamline 203K for a home buyer or, they’re great for an investor since they are priced so cheap compared to their real value.

The only problem is, some of what we find….some of the REALLY exceptional deals, are bought very quickly so if you want a beautiful home at an incredible deal…. call or email us today!

The latest numbers from RealtyTrac show that for the month of March, the average purchase price of a non-distressed home in Pennsylvania was $182,500. This compared with the average purchase of $120,371 on a foreclosed home in Pennsylvania, which works out to an average savings of about $62,000, or 34%. This is even higher than the national average savings for March, which came out to roughly 30%. Take a look at the graphs below for details.

With the money to be saved and some of the great homes available on the market right now, it makes sense to consider purchasing a foreclosure when looking for your new home.

We had a great Bi-level home on our inventory that slid perfectly into a Streamline 203K loan.  It was exactly what this couple was looking for in their home.

The house is almost 1800 square feet with a 2 car garage, 3 bedrooms, 2 full baths, large eat in kitchen, living room, dining area and family room with a coal stove.  Actually, the home was bigger than what they expected to be able to afford but it came in under their budget and that is one of the biggest advantages to these foreclosure projects. Sarah helped them secure a contract on the house for approximately $54,000 and the renovation costs were $29,950.

As with every client, there was no surprise with the final cost of the home because we presented them with the estimate before they even contracted the house, which was backed up with an independent inspection.  Barbara walked them through the financing process every step of the way and even helped clear up misinformation she discovered that would have harmed them if she had not found and corrected it.  As always, Barbara went above and beyond what any other mortgage professional would have because her focus is the client, and what is best for them.

Sarah handled all the real estate items and paperwork, which can be overwhelming if the buyer doesn’t have the quality of representation provided by PFP.  There is a mountain of paperwork and legalities and inspections that have to be attended to and Sarah handles all of it.  This afforded the client the confidence to go on with their life in anticipation of that beautiful new home while Sarah worked hard making the entire transaction as seamless as possible.

As the closing neared, Chris at Homestead Land Services began to assemble the necessary documentation and paperwork to close on the house.  Chris actually represents the client’s interests on all transactions so they know they are in great hands with Homestead!  As with any closing these days, there were last minute adjustments needed and time schedules to be accommodated but Chris performed the closing at the client’s convenience.

Once the closing was done, the real anticipation sets in for the client…. their home is just a few weeks away!  With this project, we were on a 30 day turn around as the client was out of the country for the month.  Northeastern went in and ripped out the old and renovated with new, beautiful finishes the client chose themselves, truly making this a “custom home!” New floors… new windows… new baths… new granite!!

Our client has returned from their trip and they are ecstatic with their home.  Another happy couple who got an incredible deal turning a foreclosure into a dream come true!

The main factor to consider here is competition. Banks are in the business of lending money, not owning houses. The foreclosure process itself is very costly when legal fees are taken into account, and carrying costs for properties add up quickly. Homes need to be winterized or there may be extensive and costly damage to the house, community ordinances require lawn maintenance and snow removal, acts of vandalism may affect home values, and the list goes on.

When you consider that home sales dropped 9.6% in February, also according to NAR, it becomes clear why banks need to price foreclosed property aggressively. This is the best way for them to rid themselves of the costs and aggravation associated with holding inventory as quickly as possible. This motivation, in conjunction with the lowest median home price in almost a decade, creates a great opportunity for any buyer considering a foreclosure purchase. Add in low interest rates and lending programs designed specifically for buyers wishing to renovate their new home and you can see why considering a foreclosure for your new home is a smart idea.

Pennsylvania in particular is a hot spot for finding great deals on foreclosed homes. According to RealtyTrac, buyers in Pennsylvania who bought a foreclosed property in February 2011 paid 40% less on their homes’ purchase price than the average purchase price. This makes Pennsylvania the fifth highest ranked state in the country for saving money on foreclosures.

If these numbers appeal to you and you’re interested in learning more about buying a foreclosure, please feel free to contact us for more details or browse our inventory and see what deals we have available!